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The poverty and distributional impact of macroeconomic shocks and policies : a review of modeling approaches

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  • Essama-Nssah, B.

Abstract

The importance of distributional issues in policymaking creates a need for empirical tools to assess the social impact of economic shocks and policies. This paper reviews some of the modeling approaches that are currently in use at the World Bank and other international financial institutions. The specification of these models is dictated by the issues at stake, the knowledge about the nature of the process involved, and the availability and reliability of relevant data. Furthermore, shocks and policies have macroeconomic, structural, and distributional implications. This creates interdependence between such policy issues. Finally, the distributional impact of shocks and policies hinges on the heterogeneity of socioeconomic agents with respect to endowments and behavior. In the end, each modeling approach should be judged on how well it handles the interdependence between policy issues and the heterogeneity of the stakeholders, given other constraints.

Suggested Citation

  • Essama-Nssah, B., 2005. "The poverty and distributional impact of macroeconomic shocks and policies : a review of modeling approaches," Policy Research Working Paper Series 3682, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3682
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    Cited by:

    1. Francisco Javier De Miguel-Velez & Jesus Perez-Mayo, 2008. "Poverty Reduction and SAM Multipliers: An Evaluation of Public Policies in a Regional Framework," European Planning Studies, Taylor & Francis Journals, vol. 18(3), pages 449-466, December.
    2. Rastrigina, Olga & Leventi, Chrysa & Sutherland, Holly, 2015. "Nowcasting: estimating developments in the risk of poverty and income distribution in 2013 and 2014," EUROMOD Working Papers EM12/15, EUROMOD at the Institute for Social and Economic Research.
    3. Turid Avitsland & Jorgen Aasness, 2006. "Combining microsimulation and CGE models: Effects on equality of VAT reforms," Computing in Economics and Finance 2006 132, Society for Computational Economics.
    4. Ivaschenko, Oleksiy, 2007. "The welfare impact of the exchange rate adjustment in Seychelles and possible mitigation mechanisms," Journal of Policy Modeling, Elsevier, vol. 29(3), pages 463-472.

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    Keywords

    Environmental Economics&Policies; Poverty Assessment; Economic Theory&Research; Achieving Shared Growth; Inequality;

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